Valley Forge Fund to liquidate

TheShadow

http://www.sec.gov/Archives/edgar/data/102681/000116204416001738/valley497201604.htm

497 1 valley497201604.htm

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Valley Forge Fund, Inc.

TICKER: VAFGX

Supplement dated April 20, 2016 to the Prospectus dated April 22, 2015

The Board of Directors of the Valley Forge Fund, Inc. (the "Fund"), has concluded that due to the relatively small size of the Fund, it is in the best interests of the Fund and its Shareholders that the Fund cease operations. The Board of Directors has chosen to close the Fund and redeem all remaining outstanding shares on May 27, 2016.

Effective as of the date of this Supplement, the Fund will no longer pursue its stated investment objective. The Fund will liquidate its portfolio and will invest in cash equivalents such as money market funds until all shares have been redeemed. Any required distributions of income and capital gains will be distributed as soon as practicable to Shareholders. Shares of the Fund are not available for purchase.

Prior to May 27, 2016, you may redeem your shares, including any reinvested distributions, in accordance with the "How to Redeem Shares" section in the Prospectus. Unless your investment in the Fund is through a tax-deferred retirement account, any redemption is subject to tax on any taxable gains. Please refer to the "Taxes" section in the Prospectus for general information. You may wish to consult your tax advisor about your particular situation.

ANY SHAREHOLDERS WHO HAVE NOT REDEEMED THEIR SHARES OF THE FUND PRIOR TO MAY 27, 2016, WILL HAVE THEIR SHARES AUTOMATICALLY REDEEMED AS OF THAT DATE, AND PROCEEDS WILL BE SENT TO THE ADDRESS OF RECORD. If you have questions or need assistance, please contact your financial advisor directly or the Fund toll-free at 1-800-869-1679.

IMPORTANT INFORMATION FOR RETIREMENT PLAN INVESTORS

If you are a retirement plan investor, you should consult your tax advisor regarding the consequences of any redemption of Fund shares. If you receive a distribution from an Individual Retirement Account or a Simplified Employee Pension (SEP) IRA, you must roll the proceeds into another Individual Retirement Account within sixty (60) days of the date of the distribution in order to avoid having to include the distribution in your taxable income for the year. If you receive a distribution from a 403(b)(7) Custodian Account (Tax-Sheltered account) or a Keogh Account, you must roll the distribution into a similar type of retirement plan within sixty (60) days in order to avoid disqualification of your plan and the severe tax consequences that it can bring. If you are the trustee of a Qualified Retirement Plan, you may reinvest the money in any way permitted by the plan and trust agreement.

This Supplement, and the existing Prospectus dated April 22, 2015, provide relevant information for all Shareholders and should be retained for future reference. Both the Prospectus and the Statement of Additional Information dated April 22, 2015, have been filed with the Securities and Exchange Commission, and are incorporated by reference, and can be obtained without charge by calling the Fund toll-free at 1-866-869-1679.

Ted

@MFO Members: Looking at this fund's performance percentile ranking, all I have to say is the fund doesn't deserve a wake. I won't be sending any flowers
Regards:
Ted

David_Snowball

A queer and wonderful trail though, Ted. Bernie Klawans - an aerospace engineer, right Charles? - ran it for decades, from 1971-2011, likely out of his garage. One-page website, no 800-number, no reports or newsletters or commentaries. Brought on a successor when he was in his late 80s, worked with him for a couple years, retired in April and passed away within about six months. Then his chosen successor, Craig Arnholt, died unexpectedly within a year. The Board of Trustees actually managed the fund for six months (largely successful - they beat both their LV peers and the S&P) before finding a manager who'd run the fund for a pittance. The new guy was doing fine then ... kapow! He lost 22% in September and October of 2014, when the rest of the market was essentially flat. That was a combination of a big stake in Fannie and Freddie - adverse court ruling cut their market value by half in a month - and energy exposure. He's been staggering toward the cliff ever since.

Though the website's a lot nicer.

msf

Interesting story. Thanks.

jerry

I remember many years ago when it for one year one of the top records.

Ted

@jerry: "I remember many years ago when it for one year one of the top records." I believe that's when George Washington was the fund manager.
Regards,
Ted

TheShadow

Here are two local links regarding Bernie Klawans:

Obituary: http://articles.philly.com/2011-12-22/news/30547045_1_mutual-fund-retirement-community-engineer

http://www.bizjournals.com/philadelphia/stories/2003/01/13/focus2.html